Flipper/Rehabber · Ingram, TX · Member since 2018 · 37 posts · 7 votes
Im trying to use a flat fee listing service, but in Kerrville there is only one who can list to kbor MLS. He is saying TREC has new rules that don't allow buyers agents to communicate with sellers🤨. I've looked up TREC's new rules and don't see anything. I suspect he is trying to squeeze more juice. Has anyone heard about this new rule in Texas?
So, since I flip houses all over Texas, sometimes I use flat fee listings as well. Yesterday, I was going to use one in the Houston area and he indicated that HAR does not allow limited representation listings so he wanted 1/2% at closing and to only offer 2.5% to the selling agent. Of course I said I am not going to do that I being a broker I can just join their MLS. As I was laughing, he referred to me as "old school" as now it is customary to only offer 2.5%. Needless to say it was a very amusing conversation !\
As to your question, I cannot find anywhere where TREC states that a Buyer's agent cannot contact the seller when permission has been given to do so
Rental Property Investor · Member since 2019 · 304 posts · 462 votes
7y
The last time I checked the 1st Amendment was still part of the Constitution. You can talk to anyone you like. The difference between a buyer's agent and a seller's agent is one of fiduciary. The buyer's agent has a fiduciary responsibility to the buyer, while the seller's agent has a fiduciary responsibility to the seller. Some states such as Florida have transaction brokers which have no fiduciary responsibility to either. They are only required to disclose information that is deemed material to the transaction. As long as the buyer's agent discloses to the seller at the initial point of contact that he is an agent for a buyer, there is nothing from preventing him from speaking to the seller. The seller has the choice to converse with the buyer's agent or refer him to his agent.
It's more complicated than a first amendment issue. While sure the government can't come down on the buyers agent, they could be in violation of a code of ethics (with the local board), which can carry some pretty hefty fines. I have no clue what they have put in place locally.
For instance there is a Standard of Practice nationally that says:
Standard of Practice 16-13
All dealings concerning property exclusively listed, or with buyer/tenants who are subject to an exclusive agreement shall be carried on with the client’s representative or broker, and not with the client, except with the consent of the client’s representative or broker or except where such dealings are initiated by the client.
If found to violate that they could face a fine of up to $10,000 depending on what side of the bad the hearing panel woke up on.
So, since I flip houses all over Texas, sometimes I use flat fee listings as well. Yesterday, I was going to use one in the Houston area and he indicated that HAR does not allow limited representation listings so he wanted 1/2% at closing and to only offer 2.5% to the selling agent. Of course I said I am not going to do that I being a broker I can just join their MLS. As I was laughing, he referred to me as "old school" as now it is customary to only offer 2.5%. Needless to say it was a very amusing conversation !\
As to your question, I cannot find anywhere where TREC states that a Buyer's agent cannot contact the seller when permission has been given to do so
Flipper/Rehabber · Ingram, TX · Member since 2018 · 37 posts · 7 votes
7y
@Greg H. It's not expert way. But there is only 1 guy who offers flat fee listing here. I called all the national guys who said they can list anywhere in the U.S. and they couldn't list here. I think the local board of realtors keeps pretty stringent regulations.